GBPJPY has reversed sharply from 143.00 handle, in-line with expectations. The drop between 143.00 and 136.73 might be incomplete and bears might remain poised to continue lower again after a brief pullback. Near term projections could be around 134.00/35.00 levels.
GBPJPY probable wave counts are as follows: The currency has been carving 3 wave structure since 148.00 highs. It might be an indication of a potential triangle unfolding at a larger degree. The drop between 148.00 and 124.00 was in 3 waves hence corrective.
Furthermore, the recent rally between 124.00 and 143.00 is also in3 waves labelled as A-B-C. It is quite possible that GBPJPY might be unfolding an impulse wave since 124.00 levels. If prices stay above 132.00 support, probabilities remain for yet another push towards 145.00 and 148.00.
If the above unfolds accordingly, it would confirm that GBPJPY has turned bullish and carved a major bottom around 124.00 levels. Alternately, if bears are successful in breaking below 132.00 support, it might be possible to print yet another low below 124.00.
Either way, GBPJPY remains poised to drop at least towards 134.00/135.00 levels in the near term. Immediate resistance could be seen around 141.00 mark, while support could come around 135.00 levels respectively.
Traders might be prepared to initiate fresh short positions around 141.00 levels with protective stops around 143.40 and projected target towards 135.00 levels respectively.
Technical Analysis Team
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